After a serious car accident, most accident victims are concerned about two issues. First is usually their medical or physical treatment and recovery; second is who covers the cost of damages. My clients’ first question to me is about the other driver: “Their insurance will cover this, right?”
I have to respond honestly—often, the other driver’s insurance only covers a portion of the damage. The Texas minimum insurance requirements haven’t kept up with what a serious injury costs, and many injured Texans learn about this gap at the worst possible time.
As a Texas driver, there are a couple things you need to know about minimum insurance requirements, the underinsured driver problem, and the coverage you need to protect yourself and your family.
What is “30/60/25” insurance?
A Texas driver must carry at least 30/60/25 in liability coverage:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident
- $25,000 for property damage
If the at-fault driver carries only the minimum, and you’re the only injured person, their insurer will typically pay no more than $30,000, regardless of the amount of your medical bills.
Texas HB 4178, filed in the 2025 legislative session, was an attempt to raise the minimums to $50,000 per person, $100,000 per accident, and $40,000 for property damage. However, the bill died in committee. At this time, the minimums remain at the 30/60/25 levels.
How quickly a serious injury surpasses $30,000
$30,000 sounds like a lot of money. It is a lot of money for most people.
But think about what a serious injury costs. The National Safety Council estimates that in 2024, the average economic cost of a disabling motor vehicle injury was $174,000. Even an evident injury (an injury or wound that’s clearly visible, observable, or apparent at the scene of an accident and doesn’t require specialized medical tests) averaged $45,000. Those figures cover expenses like medical bills, lost wages, and lost productivity. They don’t include pain and suffering, emotional distress, or other quality of life losses that are recoverable under Texas law.
That $30,000 doesn’t sound like so much money anymore, does it?
If you required an ambulance transport, an emergency department visit, imaging, surgery, physical therapy, and several weeks or months out of work, your costs will likely exceed $30,000 before the case is resolved. When the at-fault driver’s policy hits the limit, the difference doesn’t disappear. If you don’t have another source of coverage, the bills will need to be paid out of your pocket—or it accumulates as debt.
How many drivers are uninsured or underinsured?
Low insurance minimums are only one part of the problem for an accident victim. The other part is that many drivers have no insurance at all. The Insurance Research Council estimates that 14.5 percent of Texas motorists were uninsured in 2023. Nationally, the IRC found that one in three drivers (or 33.4 percent) were either uninsured or underinsured that year—a 10-percentage-point increase since 2017.
If you’re the victim in a Houston car accident, these statistics indicate there’s a solid chance the driver who hit you either can’t pay at all, or can’t pay enough.
Uninsured/Underinsured motorist coverage
Uninsured motorist/underinsured motorist (UM/UIM) insurance is additional coverage you can choose on your own policy. It would pay for situations when the at-fault driver doesn’t have insurance, or if their policy maximum is less than the amount of your losses.
Texas law strongly favors this coverage. Under Texas Insurance Code § 1952.101, an insurer must include UM/UIM coverage in every auto liability policy unless a named insured rejects it in writing. Many drivers sign the rejection without realizing it because they want a lower premium. However, it’s important to read the fine print; if you’re not sure if you have UM/UIM coverage, ask your agent or representative for a copy of your policy declarations and signed rejection forms.
Typically, a driver may purchase UM/UIM coverage up to the same limits as their own liability coverage. If you choose only the state minimum on your own policy, you’re left with the same $30,000 gap that the at-fault driver’s minimum policy creates.
What is insurance stacking?
“Stacking” is combining UM/UIM limits from multiple sources to make more money available after a crash. Texas treats this narrowly—courts do not allow a plaintiff to multiply limits within a single policy just because it covers several vehicles. But it is possible to combine UM/UIM limits across separate policies. Anti-stacking clauses are generally only enforced if they have clear wording.
In other words, the details matter. Did a family member have an available (separate) policy? Were you a passenger in someone else’s car? Does the policy language actually bar stacking?
These questions are important because they can be the determining factors for whether you have $30,000 in coverage, or much more. An attorney should review any policy that might apply before you accept an accident settlement.
How to protect yourself
A few steps can make a big difference if you’re involved in a Houston-area car accident:
- Review your policy today. See if you have UM/UIM coverage and at what limits.
- Consider higher limits. Raise your UM/UIM coverage to at least match your liability coverage.
- Don’t settle quickly. If you accept the at-fault driver’s limits too soon, this can affect your UIM claim. Always speak with your Houston personal injury attorney first.
- Keep your medical records. Save every record and bill; these are how you establish the full value of your claim.
A serious injury shouldn’t leave you bankrupt because another driver purchased the cheapest policy the law allows. However, if you’re recovering from a Houston crash and the at-fault driver doesn’t have sufficient coverage, contact our office today. We will investigate every possible source of coverage, including your own UM/UIM benefits, and we’ll negotiate with the insurance companies so you can focus on healing and recovery.